Alabama Administrative Code
Title 482 - ALABAMA DEPARTMENT OF INSURANCE
Chapter 482-1-054 - NOTIFICATION OF ACTIONS AGAINST INSURANCE COMPANIES, INSURANCE PRODUCERS, AND OTHER LICENSED ENTITIES
Section 482-1-054-.03 - Notice Requirement

Universal Citation: AL Admin Code R 482-1-054-.03

Current through Register Vol. 43, No. 02, November 27, 2024

(1) The Commissioner of Insurance shall be notified within thirty days of the happening of any one or more of the following:

(a) The suspension or revocation of a licensee's license, certificate of authority, or right to transact business in another state.

(b) The receipt by a licensee of an order or complaint to show why the licensee's license or certificate of authority in another state should not be suspended or revoked, or charges of any type filed against a licensee by a state or federal agency which, if substantiated, could result in the suspension or revocation of a licensee's license or certificate of authority in another state.

(c) The imposition of a monetary penalty against a domestic insurer or any insurance producer by any other state or federal agency for any violation of the insurance or insurance related laws of such other state or federal agency, other than the imposition of a monetary penalty imposed merely due to the untimely filing of reports, statements or notices, which does not also include suspension or revocation of the license.

(d) The arrest, indictment or conviction of a licensee for the commission of any felony.

(e) The filing of a civil lawsuit, the rendering of a verdict, or the finding of a court against a producer, where such lawsuit, verdict, or finding of a court alleges or charges the producer with committing any of the following acts in the State of Alabama: intentional misrepresentation, fraud, dishonesty, misappropriation or conversion of funds, a breach of a fiduciary duty, or any other offense involving a breach of trust.

(f) A final judgment entered by a court of competent jurisdiction in a civil lawsuit against a domestic insurer, wherein the domestic insurer was found to have committed any of the following acts: intentional misrepresentation, fraud, dishonesty, misappropriation or conversion of funds, a breach of a fiduciary duty, or any other offense involving a breach of trust.

(g) Failing to comply with an administrative or court order imposing a child support obligation.

(h) Failing to pay state income tax or failing to comply with any administrative or court order directing payment of state income tax.

(i) The certification of a class action lawsuit by a court of competent jurisdiction against a licensee, irrespective of the underlying charges or claims against the licensee, that substantially affects residents of the State of Alabama. A class action lawsuit will be deemed to substantially affect residents of the State of Alabama in any of the following instances:
1. The products that are the subject of the lawsuit are or have been offered for sale by the licensee within the State of Alabama.

2. The practices that are the subject of the lawsuit are or have been engaged in by the licensee within the State of Alabama.

3. The licensee knows of class members or potential class members that reside in the State of Alabama, even if the policy was originally sold in another state.

(2) The notice required in this rule shall be provided by the licensee directly involved in any such event.

Author: Commissioner of Insurance

Statutory Authority: Code of Ala. 1975, § 27-2-17.

Disclaimer: These regulations may not be the most recent version. Alabama may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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